Murphy Oil (MUR) 10-Q 7 Aug 09 2009 Q2 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	Jun. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	$507,083	$666,110
Canadian government securities with maturities greater than 90 days at the date of acquisition	584,682	420,340
Accounts receivable, less allowance for doubtful accounts of $7,758 in 2009 and $7,303 in 2008	1,157,585	1,033,996
Inventories, at lower of cost or market
Crude oil and blend stocks	151,266	98,217
Finished products	415,130	315,340
Materials and supplies	207,067	190,616
Prepaid expenses	131,788	92,544
Deferred income taxes	38,138	29,801
Total current assets	3,192,739	2,846,964
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $4,033,429 in 2009 and $3,824,393 in 2008	8,297,448	7,727,718
Goodwill	39,201	37,370
Deferred charges and other assets	579,880	537,046
Total assets	12,109,268	11,149,098
Current liabilities
Current maturities of long-term debt	0	2,572
Accounts payable and accrued liabilities	1,599,209	1,434,202
Income taxes payable	310,302	451,372
Total current liabilities	1,909,511	1,888,146
Notes payable	1,531,326	1,026,222
Deferred income taxes	957,726	878,131
Asset retirement obligations	422,663	435,589
Deferred credits and other liabilities	650,422	642,065
Stockholders' equity
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued	0	0
Common Stock, par $1.00, authorized 450,000,000 shares, issued 191,522,141 in 2009 and 191,248,941 shares in 2008	191,522	191,249
Capital in excess of par value	657,356	631,859
Retained earnings	5,792,031	5,557,483
Accumulated other comprehensive income (loss)	15,103	(87,697)
Treasury stock, 705,539 shares of Common Stock in 2009 and 535,135 shares in 2008, at cost	(18,392)	(13,949)
Total stockholders' equity	6,637,620	6,278,945
Total liabilities and stockholders' equity	$12,109,268	$11,149,098

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Thousands, except Share data	Jun. 30, 2009	Dec. 31, 2008
Accounts receivable, allowance for doubtful accounts	$7,758	$7,303
Property, plant and equipment, accumulated depreciation, depletion and amortization	$4,033,429	$3,824,393
Cumulative Preferred Stock, par	$100	$100
Cumulative Preferred Stock, authorized	400,000	400,000
Cumulative Preferred Stock, issued	0	0
Common Stock, par	$1	$1
Common Stock, authorized	450,000,000	450,000,000
Common Stock, issued	191,522,141	191,248,941
Treasury stock, shares of Common Stock	705,539	535,135

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Thousands, except Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008		6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
REVENUES
Sales and other operating revenues	$4,495,994	$8,249,207	[1]	$7,912,421	$14,715,875	[1]
Gain on sale of assets	3,570	91,860	[1]	3,585	134,246	[1]
Interest and other income	56,282	3,151	[1]	85,392	3,622	[1]
Total revenues	4,555,846	8,344,218	[1]	8,001,398	14,853,743	[1]
COSTS AND EXPENSES
Crude oil and product purchases	3,574,531	6,660,439	[1]	6,130,575	11,816,490	[1]
Operating expenses	373,889	423,524	[1]	736,250	815,048	[1]
Exploration expenses, including undeveloped lease amortization	34,946	60,400	[1]	146,051	126,896	[1]
Selling and general expenses	61,602	55,374	[1]	118,434	114,148	[1]
Depreciation, depletion and amortization	197,429	155,320	[1]	392,198	315,945	[1]
Accretion of asset retirement obligations	6,164	5,128	[1]	12,417	10,284	[1]
Redetermination of Terra Nova working interest	35,091	0	[1]	35,091	0	[1]
Interest expense	13,184	21,551	[1]	25,172	42,704	[1]
Interest capitalized	(12,127)	(5,995)	[1]	(22,450)	(12,944)	[1]
Total costs and expenses	4,284,709	7,375,741	[1]	7,573,738	13,228,571	[1]
Income from continuing operations before income taxes	271,137	968,477	[1]	427,660	1,625,172	[1]
Income tax expense	110,293	349,961	[1]	195,576	598,450	[1]
Income from continuing operations	160,844	618,516	[1]	232,084	1,026,722	[1]
Income (loss) from discontinued operations, net of income taxes	(2,074)	688	[1]	97,790	1,474	[1]
NET INCOME	$158,770	$619,204	[1]	$329,874	$1,028,196	[1]
INCOME PER COMMON SHARE - BASIC
Income from continuing operations	0.84	3.26	[1]	1.22	5.42	[1]
Income (loss) from discontinued operations	-0.01	0.01	[1]	0.51	0.01	[1]
Net income - Basic	0.83	3.27	[1]	1.73	5.43	[1]
INCOME PER COMMON SHARE - DILUTED
Income from continuing operations	0.84	3.22	[1]	1.21	5.35	[1]
Income (loss) from discontinued operations	-0.01	$0	[1]	0.51	0.01	[1]
Net income - Diluted	0.83	3.22	[1]	1.72	5.36	[1]
Average common shares outstanding - basic	190,746,583	189,564,247	[1]	190,633,781	189,372,416	[1]
Average common shares outstanding - diluted	192,380,595	192,263,483	[1]	192,189,238	191,832,034	[1]
[1]Reclassified to conform to current presentation.

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008		6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net income	$158,770	$619,204	[1]	$329,874	$1,028,196	[1]
Other comprehensive income (loss), net of tax
Net gain (loss) from foreign currency translation	179,504	11,525		98,517	(12,034)
Retirement and postretirement benefit plan gains (losses)	2,095	884		4,283	(605)
COMPREHENSIVE INCOME	$340,369	$631,613		$432,674	$1,015,557
[1]Reclassified to conform to current presentation.

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 30, 2008
OPERATING ACTIVITIES
Net income	$329,874		$1,028,196	[1]
Income from discontinued operations	97,790		1,474	[1]
Income from continuing operations	232,084		1,026,722	[1]
Adjustments to reconcile income from continuing operations to net cash provided by operating activities
Depreciation, depletion and amortization	392,198		315,945	[1]
Amortization of deferred major repair costs	12,729		13,176	[1]
Expenditures for asset retirements	(36,686)		(2,928)	[1]
Dry hole costs	68,476		11,005	[1]
Amortization of undeveloped leases	53,664		56,515	[1]
Accretion of asset retirement obligations	12,417		10,284	[1]
Deferred and noncurrent income tax charges	24,239		162,553	[1]
Pretax gain from disposition of assets	(3,585)		(134,246)	[1]
Net increase in noncash operating working capital	(193,135)		(34,527)	[1]
Other operating activities, net	(49,571)		25,321	[1]
Net cash provided by continuing operations	512,830		1,449,820	[1]
Net cash provided (required) by discontinued operations	(328)		58,766	[1]
Net cash provided by operating activities	512,502		1,508,586	[1]
INVESTING ACTIVITIES
Property additions and dry hole costs	(1,004,897)		(1,010,329)	[1]
Proceeds from sales of assets	1,160		360,677	[1]
Purchase of investment securities	(1,185,757)	[2]	(345,072)	[1],[2]
Proceeds from maturity of investment securities	1,021,415	[2]	0	[1],[2]
Expenditures for major repairs	(12,952)		(33,152)	[1]
Other - net	(15,251)		(11,615)	[1]
Investing activities of discontinued operations
Sales proceeds	78,908		0	[1]
Other	(845)		(4,587)	[1]
Net cash required by investing activities	(1,118,219)		(1,044,078)	[1]
FINANCING ACTIVITIES
Increase in notes payable	505,000		27,000	[1]
Decrease in nonrecourse debt of a subsidiary	(2,572)		(5,235)	[1]
Proceeds from exercise of stock options and employee stock purchase plans	5,429		20,443	[1]
Excess tax benefits related to exercise of stock options	2,031		18,310	[1]
Cash dividends paid	(95,326)		(71,227)	[1]
Net cash provided (required) by financing activities	414,562		(10,709)	[1]
Effect of exchange rate changes on cash and cash equivalents	32,128		(11,001)	[1]
Net increase (decrease) in cash and cash equivalents	(159,027)		442,798	[1]
Cash and cash equivalents at January 1	666,110		673,707	[1]
Cash and cash equivalents at June 30	507,083		1,116,505	[1]
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Cash income taxes paid	87,411		161,745	[1]
Interest paid, net of amounts capitalized	$1,607		$29,774	[1]
[1]Reclassified to conform to current presentation.
[2]Represents cash invested in Canadian government securities with maturities greater than 90 days at the date of acquisition.

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands			Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at beginning of period at Dec. 31, 2007	$0	$189,973	$547,185	$3,983,998	$351,765	($6,747)
Exercise of stock options		1,000	39,958
Foreign currency translation gains (losses), net of income taxes					(12,034)		(12,034)
Net income for the period				1,028,196			1,028,196	[1]
Restricted stock transactions and other			6,961
Retirement and postretirement benefit plan gains (losses), net of income taxes					(605)		(605)
Cash dividends				(71,227)
Stock-based compensation			15,307
Sale of stock under employee stock purchase plans			0			363
Cancellation of performance-based restricted stock and forfeitures						(7,650)
Balance at end of period at Jun. 30, 2008	0	190,973	609,411	4,940,967	339,126	(14,034)	6,066,443
Balance at beginning of period at Mar. 31, 2008	0
Balance at end of period at Jun. 30, 2008	0
Balance at beginning of period at Dec. 31, 2008	0	191,249	631,859	5,557,483	(87,697)	(13,949)	6,278,945
Exercise of stock options		273	7,870
Foreign currency translation gains (losses), net of income taxes					98,517		98,517
Net income for the period				329,874			329,874
Restricted stock transactions and other			5,439
Retirement and postretirement benefit plan gains (losses), net of income taxes					4,283		4,283
Cash dividends				(95,326)
Stock-based compensation			11,783
Sale of stock under employee stock purchase plans			405			629
Cancellation of performance-based restricted stock and forfeitures						(5,072)
Balance at end of period at Jun. 30, 2009	0	191,522	657,356	5,792,031	15,103	(18,392)	6,637,620
Balance at beginning of period at Mar. 31, 2009	0
Balance at end of period at Jun. 30, 2009	$0
[1]Reclassified to conform to current presentation.

Notes to Financial Statements

Notes to Financial Statements
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note A - Interim Financial Statements	Note A Interim Financial Statements The consolidated financial statements of the Company presented herein have not been audited by independent auditors, except for the Consolidated Balance Sheet at December31, 2008. In the opinion of Murphys management, the unaudited financial statements presented herein include all accruals necessary to present fairly the Companys financial position at June30, 2009, and the results of operations, cash flows and changes in stockholders equity for the three-month and six-month periods ended June30, 2009 and 2008, in conformity with accounting principles generally accepted in the United States. In preparing the financial statements of the Company in conformity with accounting principles generally accepted in the United States, management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the estimates. Financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Companys 2008 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report. Financial results for the three-month and six-month periods ended June30, 2009 are not necessarily indicative of future results.
Note B - Discontinued Operations	Note B Discontinued Operations On March12, 2009, the Company sold its operations in Ecuador for net cash proceeds of $78.9million. The acquirer also assumed certain tax and other liabilities associated with the Ecuador properties sold. The Ecuador properties sold included 20% interests in producing Block16 and the nearby Tivacuno area. The Company recorded a gain of $103.6 million, net of income taxes of $14.0 million, from the sale of the Ecuador properties in 2009. The Company used the proceeds of the sale to pay down debt and to partially fund ongoing development projects in other areas. At the time of the sale, the Ecuador properties produced approximately 6,700 net barrels per day of heavy oil and had net oil reserves of approximately 4.6million barrels. Ecuador operating results prior to the sale, and the resulting gain on disposal, have been reported as discontinued operations. The consolidated financial statements for 2008 have been reclassified to conform to this presentation. In past reports, the operating results for the Ecuador properties were primarily included in the Ecuador segment in the Oil and Gas Operating Results table; interest expense associated with the business was previously included in Corporate results. The major assets (liabilities) associated with the Ecuador properties were as follows: (Thousands of dollars) Current assets $ 4,214 Property, plant and equipment, net of accumulated depreciation, depletion and amortization 65,178 Other noncurrent assets 683 Assets sold $ 70,075 Current liabilities $ 105,185 Other noncurrent liabilities 35 Liabilities associated with assets sold $ 105,220 The following table reflects the results of operations from the sold properties including the gain on sale. Six Months Ended June30, (Thousands of dollars) 2009 2008 Revenues, including a pretax gain on sale of $117,557 in 2009 $ 125,654 43,138 Income before income tax expense 110,551 2,344 Income tax expense 12,761 870
Note C - Property, Plant and Equipment	Note C Property, Plant and Equipment Financial Accounting Standards Board (FASB) Staff Position (FSP) 19-1 applies to companies that use the successful efforts method of accounting and it clarifies that exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. At June30, 2009, the Company had total capitalized exploratory well costs pending the determination of proved reserves of $375.1 million. The following table reflects the net changes in capitalized exploratory well costs during the six-month periods ended June30, 2009 and 2008. (Thousands of dollars) 2009 2008 Beginning balance at January1 $ 310,118 272,155 Additions pending the determination of proved reserves 65,012 16,748 Reclassifications to proved properties based on the determination of proved reserves (6,869 ) Balance at June30 $ 375,130 282,034 The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized. The projects are aged based on the last well drilled in the project. June30, 2009 2008 (Thousands of dollars) Amount No.of Wells No. of Projects Amount No.of Wells No. of Projects Aging of capitalized well costs: Zero to one year $ 93,446 29 6 $ 19,891 2 1 One to two years 18,046 10 1 26,473 11 1 Two to three years 26,271 2 2 122,796 19 2 Three years or more 237,367 8 6 112,874 11 6 $ 375,130 49 15 $ 282,034 43 10 Of the $281.7 million of exploratory well costs capitalized more than one year at June30, 2009, $177.7 million is in Malaysia, $60.3 million is in the Republic of Congo, $27.6 million is in the U.S., $9.6 million is in the U.K., and $6.5million is in Canada. In Malaysia either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. In the Republic of Congo a development program is underway for the offshore Azurite field. In the U.S. drilling and development operations are planned. In the U.K. further studies to evaluate the discovery are ongoing, and in Canada a continuing drilling and development program is underway. In May 2008, the Company sold its interest in the Lloydminster area properties in Western Canada for a pretax gain of $91.3 million ($67.9 million after-tax). In January 2008, the Company sold its interest in Berkana Energy Corporation and recorded a pretax gain of $42.3 million ($40.4 million after-tax).
Note D - Insurance Matters	Note D Insurance Matters The Company maintains insurance coverage related to losses of production and profits for occurrences such as storms, fires and other issues. During the second quarter 2009, the Company received insurance proceeds to settle business interruption claims related to downtime following a fire at the Meraux, Louisiana refinery in June 2003. Additionally, other insurance proceeds were received during the second quarter 2009 related to damages at the Meraux refinery caused by Hurricane Katrina in 2005. Gains of $21.9 million were recorded in Sales and Other Operating Revenues in the respective Consolidated Statements of Income for the three-month and six-month periods ended June30, 2009.
Note E - Employee and Retiree Benefit Plans	NoteE Employee and Retiree Benefit Plans The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. directors plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory. The table that follows provides the components of net periodic benefit expense for the three-month and six-month periods ended June30, 2009 and 2008. Three Months Ended June30, Pension Benefits Other PostretirementBenefits (Thousands of dollars) 2009 2008 2009 2008 Service cost $ 4,335 4,562 817 628 Interest cost 7,306 6,673 1,449 1,285 Expected return on plan assets (4,900 ) (5,829 ) Amortization of prior service cost 420 340 (69 ) (66 ) Amortization of transitional asset (114 ) (131 ) Recognized actuarial loss 3,074 1,025 439 421 10,121 6,640 2,636 2,268 Special termination benefits expense 1,867 Curtailment expense 972 Net periodic benefit expense $ 12,960 6,640 2,636 2,268 Six Months Ended June 30, Pension Benefits Other PostretirementBenefits (Thousands of dollars) 2009 2008 2009 2008 Service cost $ 8,453 9,100 1,593 1,237 Interest cost 14,294 13,414 2,840 2,535 Expected return on plan assets (10,246 ) (11,686 ) Amortization of prior service cost 818 684 (135 ) (131 ) Amortization of transitional asset (220 ) (263 ) Recognized actuarial loss 6,018 2,041 860 830 19,117 13,290 5,158 4,471 Special termination benefits expense 1,867 Curtailment expense 972 Net periodic benefit expense $ 21,956 13,290 5,158 4,471 The increase in net periodic benefit expense in 2009 compared to 2008 is primarily due to the decline in value of pension plan assets during the last year. Special termination and curtailment expenses in 2009 related to an early retirement program for certain employees. Murphy previously disclosed in its financial statements for the year ended December31, 2008, that it expected to contribute $50.2 million to its defined benefit pension plans and $4.9 million to its other postretirement benefits plan during 2009. The anticipated defined benefit pension plan contributions included $30.0 million of voluntary contributions in the U.S
Note F - Incentive Plans	NoteF Incentive Plans Statement of Financial Accounting Standards (SFAS) No.123R, Share Based Payment, requires that the cost resulting from all share-based payment transactions be recognized as an expense in the financial statements using a fair value-based measurement method over the periods that the awards vest. The 2007 Annual Incentive Plan (2007 Annual Plan) authorizes the Executive Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and other key employees. Cash awards under the 2007 Annual Plan are determined based on the Companys actual financial and operating results as measured against the performance goals established by the Committee. The 2007 Long-Term Incentive Plan (2007 Long-Term Plan) authorizes the Committee to make grants of the Companys Common Stock to employees. These grants may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SAR), restricted stock, restricted stock units, performance units, performance shares, dividend equivalents and other stock-based incentives. The 2007 Long-Term Plan expires in 2017. A total of 6,700,000 shares are issuable during the life of the 2007 Long-Term Plan, with annual grants limited to 1% of Common shares outstanding. The Company has an Employee Stock Purchase Plan that permits the issuance of up to 980,000 shares through June30, 2017. The Company also has a Stock Plan for Non-Employee Directors that permits the issuance of restricted stock and stock options or a combination thereof to the Companys Directors. In February 2009, the Committee granted stock options for 1,057,000 shares at an exercise price of $43.95 per share. The Black-Scholes valuation for these awards was $15.15 per option. The Committee also granted 375,050 performance-based restricted stock units in February 2009. The fair value of the performance-based restricted stock units, using a Monte Carlo valuation model, was $42.42 per unit. Also in February 2009 the Committee granted 47,790 shares of time-lapse restricted stock to the Companys Directors under the 2008 Non-employee Director Plan. These shares vest on the third anniversary of the date of grant. The fair value of these awards was estimated based on the fair market value of the Companys stock on the date of grant, which was $44.65 per share. Cash received from options exercised under all share-based payment arrangements for the six-month periods ended June30, 2009 and 2008 was $5.4 million and $20.4 million, respectively. The actual income tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements totaled $2.6 million and $20.2million for the six-month periods ended June30, 2009 and 2008, respectively. Amounts recognized in the financial statements with respect to share-based plans are as follows. Six Months Ended June 30, (Thousands of dollars) 2009 2008 Compensation charged against income before tax benefit $ 12,060 16,158 Related income tax benefit recognized in income 3,314 5,321
Note G - Earnings per Share	NoteG Earnings per Share Net income was used as the numerator in computing both basic and diluted income per Common share for the three-month and six-month periods ended June30, 2009 and 2008. The following table reconciles the weighted-average shares outstanding used for these computations. Three Months Ended June 30, Six Months Ended June 30, (Weighted-average shares) 2009 2008 2009 2008 Basic method 190,746,583 189,564,247 190,633,781 189,372,416 Dilutive stock options and restricted stock units 1,634,012 2,699,236 1,555,457 2,459,618 Diluted method 192,380,595 192,263,483 192,189,238 191,832,034 Certain options to purchase shares of common stock were outstanding during the 2009 and 2008 periods but were not included in the computation of diluted EPS because the incremental shares from assumed conversion were antidilutive. These included 1,922,000 shares at a weighted average share price of $56.96 in each 2009 period and 928,500 shares at a weighted average share price of $72.745 in each 2008 period.
Note H - Financial Instruments and Risk Management	NoteH Financial Instruments and Risk Management Murphy periodically utilizes derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Companys senior management. The Company does not hold any derivatives for speculative purposes, and it does not use derivatives with leveraged or complex features. Derivative instruments are traded primarily with creditworthy major financial institutions or over national exchanges. The Company has a risk management control system to monitor commodity price risks and any derivatives obtained to manage a portion of such risks. Crude Oil Purchase Price Risks The Company purchases crude oil as feedstock at its U.S. and U.K. refineries and is therefore subject to commodity price risk. Short-term derivative instruments were outstanding at both June30, 2009 and 2008 to manage the cost of about 0.7million barrels of crude oil at the Companys refineries. The impact on consolidated income from continuing operations before income taxes from marking these derivative contracts to market as of the balance sheet dates was a charge of $0.4 million and a benefit of $1.0million, respectively, in the six-month periods ended June30, 2009 and 2008. Foreign Currency Exchange Risks The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S. Short-term derivative instruments were outstanding at June30, 2009 and 2008 to manage the risk of approximately $21 million and $83 million, respectively, of U.S. dollar balances associated with the Companys Canadian operation. Short-term derivative instruments were outstanding at June30, 2009 and 2008 to manage the risk of approximately $50 million and $97 million equivalent of ringgit balances, respectively, in the Companys Malaysian operations. The impact on consolidated income from continuing operations before taxes from marking these derivative contracts to market as of the balance sheet dates was a gain of $1.6 million and a charge of $1.1million, respectively, in the six-month periods ended June30, 2009 and 2008. At June30, 2009, the fair value of derivative instruments not designated as hedging instruments are presented in the following table. June30, 2009 Asset Derivatives Liability Derivatives (Thousands of dollars) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivative contracts $ Accounts Payable and Accrued Liabilities $ 16,730 Foreign exchange derivative contracts Accounts Receivable 1,778 Accounts Payable and Accrued Liabilities 178 For the six-month period ended June30, 2009, the gains and losses recognized in the consolidated statement of income for derivative instruments not designated as hedging instruments are presented in the following table. SixMonthsEndedJune30,2009 (Thousands of dollars) LocationofGain(Loss) Recogni
Note I - Accumulated Other Comprehensive Income (Loss)	Note I Accumulated Other Comprehensive Income (Loss) The components of Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheets at June30, 2009 and December31, 2008 are presented in the following table. (Thousands of dollars) June30, 2009 Dec. 31, 2008 Foreign currency translation gains, net of tax $ 144,034 45,517 Retirement and postretirement benefit plan losses, net of tax (128,931 ) (133,214 ) Accumulated other comprehensive income (loss) $ 15,103 (87,697 )
Note J - Environmental and Other Contingencies	Note J Environmental and Other Contingencies The Companys operations and earnings have been and may be affected by various forms of governmental action both in the United States and throughout the world. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; royalty and revenue sharing increases; import and export controls; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and gas or mineral leases; restrictions on drilling and/or production; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Companys relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations and may be taken without full consideration of their consequences, and may be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. Murphy and other companies in the oil and gas industry are subject to numerous federal, state, local and foreign laws and regulations dealing with the environment. Violation of federal or state environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where these wastes have been taken for disposal. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under Murphys control. Under existing laws the Company could be required to remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. While some of these historical properties are in various stages of negotiation, investigation, and/or cleanup, the Company is investigating the extent of any such liability and the availability of applicable defenses and believes cos
Note K - Accounting Matters	Note K Accounting Matters In December 2007, the FASB issued SFAS No.160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.51. This statement was adopted by the Company on January1, 2009 and it is to be applied prospectively, except for presentation and disclosure requirements which are applied retrospectively. This statement requires noncontrolling interests to be reclassified as equity, and consolidated net income and comprehensive income shall include the respective results attributable to noncontrolling interests. The adoption of this statement did not have a significant effect on the Companys consolidated financial statements. In December 2007, the FASB issued SFAS No.141 (revised 2007), Business Combinations. This statement was adopted by the Company as of January1, 2009 and it establishes principles and requirements for how an acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired business. It also establishes how to recognize and measure goodwill acquired in the business combination or a gain from a bargain purchase, if applicable. Assets and liabilities that arise from business combinations that occurred prior to 2009 are not affected by this statement. The adoption of this statement had no effect on the Companys financial statements for the six-month period ended June30, 2009. This statement will impact the recognition and measurement of assets and liabilities in business combinations that occur beginning in 2009, and the Company is unable to predict at this time how the application of this statement will affect its financial statements in future periods. In March 2008, the FASB issued SFAS No.161, Disclosure about Derivative Instruments and Hedging Activities. This statement was adopted by the Company in January 2009, and it expands required disclosures regarding derivative instruments to include qualitative information about objectives and strategies for using derivatives, quantities disclosures about fair value amounts and gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements. See Note H for further disclosures. In June 2008, the FASB issued FASB Staff Position on EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities (FSP EITF 03-6-1). This statement, which was adopted by the Company in 2009, provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, need to be included in the earnings per share (EPS) calculation under the two-class method. All prior-period EPS calculations must be adjusted retrospectively. The adoption of this statement did not have a significant impact on the Companys prior-period EPS calculations. In November 2008, the EITF published Issue No.08-6, Equity Method Investment Accounting Considerations. This pronouncement was adopted by the Company in January
Note L - Business Segments	Note L Business Segments Total Assets at June 30, 2009 ThreeMos.EndedJune30,2009 ThreeMos.EndedJune30,20081 (Millions of dollars) External Revenues Inter- Segment Revenues Income (Loss) External Revenues Inter- segment Revenues Income (Loss) Exploration and production2 United States $ 1,659.2 82.9 3.9 182.5 71.4 Canada 2,178.9 165.7 9.5 (6.4 ) 450.2 26.8 236.4 United Kingdom 205.7 15.1 3.6 37.5 14.4 Malaysia 2,961.8 306.2 127.2 544.1 263.4 Other 629.2 .2 (10.0 ) (.6 ) (9.1 ) Total 7,634.8 570.1 9.5 118.3 1,213.7 26.8 576.5 Refining and marketing North America 2,367.2 3,241.4 21.4 5,532.8 5.0 United Kingdom 873.3 688.0 6.4 1,594.6 72.3 Total 3,240.5 3,929.4 27.8 7,127.4 77.3 Total operating segments 10,875.3 4,499.5 9.5 146.1 8,341.1 26.8 653.8 Corporate 1,234.0 56.3 14.8 3.1 (35.3 ) Revenue/income from continuing operations 4,555.8 9.5 160.9 8,344.2 26.8 618.5 Discontinued operations, net of tax (2.1 ) 0.7 Total $ 12,109.3 4,555.8 9.5 158.8 8,344.2 26.8 619.2 Six Months Ended June30, 2009 Six Months Ended June30, 20081 (Millions of dollars) External Revenues Inter- segment Revenues Income (Loss) External Revenues Inter- segment Revenues Income (Loss) Exploration and production2 United States $ 153.9 (3.4 ) 325.6 118.5 Canada 279.1 30.6 (5.8 ) 776.2 50.3 387.7 United Kingdom 26.8 7.0 123.6 46.5 Malaysia 643.6 244.7 1,008.7 468.1 Other .7 (73.9 ) .8 (17.1 ) Total 1,104.1 30.6 168.6 2,234.9 50.3 1,003.7 Refining and marketing North America 5,638.0 36.0 10,063.0 6.0 United Kingdom 1,173.9 2.6 2,552.2 81.5 Total 6,811.9 38.6 12,615.2 87.5 Total operating segments 7,916.0 30.6 207.2 14,850.1 50.3 1,091.2 Corporate 85.4 24.9 3.6 (64.5 ) Revenue/income from continuing operations 8,001.4 30.6 232.1 14,853.7 50.3 1,026.7 Discontinued operations, net of tax 97.8 1.5 Total $ 8,001.4 30.6 329.9 14,853.7 50.3 1,028.2 1 Reclass
Note M- Subsequent Events	Note M Subsequent Events The Company has evaluated subsequent events through the date of issuance of these consolidated financial statements (August 7, 2009). In certain cases, events that occur after the balance sheet date lead to recognition and/or disclosure in the consolidated financial statements.

Document Information

Document Information
	6 Months Ended Jun. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Amendment Description	N.A.
Document Period End Date	2009-06-30

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jun. 30, 2008
Entity [Text Block]
Trading Symbol	MUR
Entity Registrant Name	MURPHY OIL CORP /DE
Entity Central Index Key	0000717423
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	190,816,602
Entity Public Float		$18,672,125,000